The American-style commercial tactics of Derby County FC’s owners General Sport and Entertainment Group (GSE) have been revealed by vice president of commercial at Pride Park, Tim Hinchey, as the company prepares to enter its second year at the helm.
GSE, club-owners since January 2008, are using tried-and-tested business methods from across the Atlantic to reap the benefits of facing Manchester United twice in the Carling Cup semi-final, and the club's raised media profile following the appointment of new manager Nigel Clough.
"The NBA is a dynamic, exciting and very polished product," Hinchey, who previously worked with clubs in the American basketball league, told BritSport Weekly. "But when I was sitting down at the (Manchester United) match and was receiving emails from all across the world from people saying they were watching, it was amazing to witness and experience the power of football and that confirms why I think we are in the right place."
Derby’s cup run has seen the side face and defeat world and European Champions Manchester United – a great achievement both on the pitch and commercially, and one that the struggling Championship side will look to repeat in the away fixture on January 20th. It is predicted that Derby County will make a seven-figure revenue from the two fixtures.
"This (game) is a tremendous opportunity to elevate our brand coming up to our year anniversary in charge,” says Hinchey. “We are looking to bring years of professional sports experience from the corporate marketplace in America, and that requires a proactive approach to our business in so many ways.
"With corporate hospitality we are looking to leverage a once-in-a-lifetime experience by converting those customers into buyers for our entire league season.
"With match-by-match fans, our goal is to leverage them into an extra league game this season. We are looking to be both strategic and ambitious, but at the same time it is paramount to deliver good value and best-in-class service."
As former executive vice president of business operations for the NBA’s Charlotte Bobcats and WNBA’s Charlotte Sting, Hinchey has brought his experience to bear in Derby’s attempts to fully cash-in on the commercial goldmine of English club football.
"One of the main differences between the commercial area of our business in the US and the UK is that there is a greater amount of investment in human resources in the US. We would have 40 to 50 full-time staff representing an NBA sales and marketing team (ticket sales, corporate hospitality and sponsorship sales). In the UK, with a football team, you could have perhaps only two or three people in a dedicated sales team. As far as I am aware we are the only team in England that has a dedicated full-time season ticket sales staff of eight people."
So far Hinchey’s season-ticket strategy appears to be reaping dividends. The club has sold 23,000 season tickets so far this season, with 19,000 renewing at the old price. The 3,500 to 4,000 new tickets sold is particularly notable considering the club was relegated from the Premier League last season. In Derby’s Championship stint at the start of the decade, season ticket sales averaged only 16,500 to 17,000 over a five-year period.
Hinchey is also keen to emphasise the distinctive relationship Derby is forming with sponsorship partners. "We do not go to market and offer rates for sponsorship or give a menu of prices or an available inventory. Everything is bespoke," he says. "We do not want to be just an advertising company. We talk to businesses and we focus on listening to what they have to say and what their core business objectives are."
